Posted on 23 Apr 2024
Production of hot-rolled coils (HRC) among the 37 Chinese flat steel producers Mysteel regularly monitors rebounded slightly to 3.23 million tonnes during April 15-19, edging up by 18,200 tonnes or 0.57% on week, Mysteel's latest weekly production survey shows.
Meanwhile, the hot-rolling capacity utilization rate among the 37 mills also ticked up by 0.47 percentage point on week to average 82.56% last week, the survey found.
Some steel producers in Northeast China resumed operations during the sample period after completing maintenance stoppages, resulting in the on-week rise of HRC output, survey respondents noted.
The higher output of HRC, and mills observing normal rates of delivery, saw total stocks of the flat product inch up last week, with the total tonnage held by the 37 surveyed mills gaining 0.16% on week to 879,700 tonnes as of April 18.
On the other hand, HRC inventories at commercial warehouses in the 33 Chinese cities under Mysteel's tracking declined for the third straight week, easing by another 0.74% on week to 3.3 million tonnes as of April 18, reflecting the recent steady recovery in flat product consumption.
The recovery in downstream demand for HRC, combined with the increase in raw materials prices last week, led prices of hot coils in both the spot and futures markets to move higher during the survey week.
By April 19, China's spot price of Q235 4.75mm HRC under Mysteel's assessment had also gained Yuan 56/tonne ($7.73/t) or 1.48% on week to reach Yuan 3,847/t including the VAT.
On the same day, the Shanghai Futures Exchange's most-traded HRC futures contract for October delivery closed the daytime trading session at Yuan 3,835/t, higher by Yuan 67/t or 1.8% from the April 12 settlement price.
Source:Mysteel Global
